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The Fortescue Metals Group Limited (ASX: FMG) dividend has been a favourite of income investors in recent years.

Thanks to sky high iron ore prices, the mining giant has been rewarding shareholders handsomely with payouts.

But will this continue in the future? Let’s take a look at one leading broker is forecasting for the Fortescue dividend through to FY 2024.

Where is the Fortescue dividend heading?

Unfortunately, the team at Goldman Sachs believe that the Fortescue dividend is now on a downward trajectory.

In FY 2021, the company paid shareholders a fully franked A$3.58 per share dividend. This was double the A$1.76 per share dividend that it rewarded shareholders with a year earlier in FY 2020.

Unfortunately, Goldman Sachs is expecting the Fortescue dividend to be back down to almost 2020 levels in FY 2022.

It is forecasting a fully franked US$1.29 (A$1.85) per share dividend this year. Though, it is worth noting that this will still be an above average yield. Based on the current Fortescue share price of $18.25, this will mean a fully franked yield of 10.1%.

What’s next?

Goldman is expecting the dividend cuts to continue in FY 2023. It is expecting the Fortescue dividend to be reduced to 73 US cents (A$1.05) per share. This would mean a fully franked dividend yield of 5.75% for investors.

The cuts are expected to continue in FY 2024, with the broker forecasting a further decline to 42 US cents (60 Australian cents) per share for that financial year.

Based on the current Fortescue share price, this will mean a fully franked dividend yield of approximately 3.3% in FY 2024.

Why the cuts?

As well as forecasting a softening benchmark iron ore price from an average of US$120 per tonne in 2022 to US$80 per tonne in 2024, the broker believes Fortescue’s decarbonisation plans and the Fortescue Futures Industries business will weigh on its free cash flow.

Goldman commented:

We think decarbonising the Pilbara could cost FMG over US$7bn and requires +US$50/t carbon or a green premia to be NPV positive. FMG has outlined that the Pilbara decarbonisation project/assets would logically sit within FFI (although ultimately under a Power Purchasing Agreement (PPA) which would still be reflected on FMG’s balance sheet). In order to fund FFI projects, we think FMG will need to reduce their dividend payout ratio from 80% to 50% from 2022 onwards.

The broker has a sell rating and lowly $13.20 price target on the Fortescue share price.

The post Here’s the Fortescue dividend forecast through to 2024 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why is the Fortescue share price climbing today?
• How might China’s $6b Mineral Resources Group impact the iron ore price?
• What’s going wrong for the Fortescue share price on Thursday?
• Why did the Fortescue share price leap 5% on Wednesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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National Australia Bank Ltd (ASX: NAB) is one of the biggest dividend payers on the ASX. But should investors buy NAB shares primarily for the dividends?

NAB is one of the largest ASX banks in Australia and among the ‘big four’ alongside Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

The big banks have long had a reputation for being dividend payers. While there were some dividend reductions in 2020 due to COVID-19, payments have been steadily climbing back to pre-pandemic levels.

In its FY22 half-year results, NAB announced an interim dividend of 73 cents per share, which was an increase of 21.7% on the FY21 dividend.

Let’s look at the size of the dividends that NAB is expected to pay over the next couple of financial years.

Estimated NAB dividends

According to the dividend estimates on CMC Markets, the big four ASX bank is expected to pay an annual dividend of $1.48 in FY22. This would translate into a grossed-up dividend yield of 7.1% in FY22.

In FY23, the dividend is estimated to grow again to $1.62 per share. On today’s NAB share price, that would be a grossed-up dividend yield of 7.75%.

Another increase is expected in FY24. The projected annual dividend is $1.71 per share. This would result in a grossed-up dividend yield of 8.2%.

Each of those dividend yields is quite attractive, in my opinion.

If income was the only thing I was considering, it’s not a bad yield at all.

But I don’t think that dividends can be looked at in isolation.

NAB share price considerations

I don’t think there’s much point going for a 7% dividend yield if the share price is likely to fall by at least 7% or more.

I’m looking for ASX shares that can provide both dividend income and capital growth over the long term. A bit of volatility in share prices is unavoidable. Shares are meant to go up and down in the short term.

Interest rates are quickly going higher as central banks including the Reserve Bank of Australia (RBA) try to get on top of inflation.

While this could lead to a higher net interest margin (NIM) for banks, there is also the concern that it could mean more bad debts. How many home loans could go bad? Well, that’s up for debate.

The RBA suggests that Aussie households are well-positioned for what comes next because they have collectively saved up during the COVID-19 years. I’m probably a little less confident than the RBA. Aussie households have a lot of debt – but hopefully, loan arrears don’t go too high.

Is the bank a buy for dividends?

I think NAB has done well to generate profit growth in recent times. I believe it could keep doing well, but it’s not at the top of my own watchlist for dividends.

I’m looking for businesses that can grow their profit at a healthy rate over the long term, while also hopefully continuing to grow their dividends.

The post Should investors buy NAB shares for the dividends? Here’s what I think appeared first on The Motley Fool Australia.

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More reading

• Why did the ANZ share price smash the other ASX 200 banks today?
• How high will the RBA hike rates in 2022? Here’s what the ASX 200 banks are forecasting
• Is the NAB share price in danger from a resurgent ANZ?
• ‘CBA and Westpac are too big’: One fund manager’s take on the future of ASX 200 bank shares
• Top ASX dividend shares to buy in July 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for some dividend options for your income portfolio this week? If you are, then take a look at the two ASX 200 dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this supermarket giant.

Thanks to its strong market position (800+ supermarkets, 900+ liquor retail stores, and 700+ Coles express stores) and defensive qualities, Coles has been tipped to continue growing its sales, profits, and dividends in the coming years.

In addition, this will be supported by its refreshed strategy and the construction of its smart distribution centres, which are aiming to make its operations more efficient and cut costs.

Morgans is bullish on Coles and has an add rating and $20.65 price target on its shares.

In respect to dividends, Citi is forecasting fully franked dividends per share of 61 cents in FY 2022 and 64 cents in FY 2023. Based on the current Coles share price of $18.87, this will mean yields of 3.2% and 3.4%, respectively.

Westpac Banking Corp (ASX: WBC)

A second ASX 200 dividend share that could be in the buy zone is Westpac.

It is of course one of Australia’s big four banks and, as well as the eponymous Westpac brand, is home to a collection of other regional banking brands such as Bank of Melbourne, Bank SA, and St Georges.

Australia’s oldest bank is currently going through a major cost cutting programme that aims to reduce its cost base materially in the coming years.

It is partly for this reason that the team at Citi is bullish on the bank. In fact, its analysts see Westpac “delivering the strongest EPS growth in the sector” in the coming years.

Citi has a buy rating and $29.00 price target on the bank’s shares.

It is also forecasting big fully franked dividend yields for investors. It has pencilled in dividends of 123 cents per share in FY 2022 and 155 cents per share in FY 2023. Based on the current Westpac share price of $21.05, this will mean yields of 5.8% and 7.35%, respectively.

The post Here are 2 ASX 200 dividend shares to buy according to experts appeared first on The Motley Fool Australia.

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More reading

• Brokers rate these ASX dividend shares as buys
• Own Westpac shares? Why the major bank could soon make a crypto splash
• Why did the ANZ share price smash the other ASX 200 banks today?
• Can the Coles share price beat the ASX 200 again in FY23?
• RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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An expert has nominated two ASX shares as a buy, urging investors to take advantage of the market’s sentiment at the moment.

Catapult Wealth portfolio manager Tim Haselum suggested this week that it’s prudent to buy into S&P/ASX 200 Index (ASX: XJO) stocks possessing qualities that other people are currently seeking.

And with inflation still raging and more interest rate rises to come, the lack of clarity about the economy and consumer demand is paralysing investors at the moment.

“In uncertain times, the market values defensive stocks due to reliable earnings,” Haselum told The Bull.

Both dividends and growth: what more could you want?

His first pick is a classic — Australia’s dominant telecommunications giant Telstra Corporation Ltd (ASX: TLS).

The share price has cooled off more than 6.6% year-to-date, presenting a decent entry point currently.

“Telstra is a key defensive stock, recently trading on an attractive dividend yield of around 4%,” said Haselum.

“According to our analysis, the growth rate is between 4% and 5%.”

Haselum mentioned that there are both internal and external drivers that offer “good value” for shares in the mobile and internet provider.

“The company’s T25 [reform] strategy appears to be progressing well,” he said.

“We should see more international roaming in fiscal year 2023.”

Last week The Motley Fool reported that Morgans is also a fan of Telstra as a dividend play.

“Morgans remains positive on Telstra and continues to forecast fully franked 16 cents per share dividends in FY 2022 and FY 2023,” wrote James Mickleboro.

“The broker also sees plenty of upside for its shares with its add rating and a $4.56 price target.”

Telstra shares closed Monday at $3.92.

‘A strong balance sheet and defensive core earnings’

Many analysts favour healthcare as a sector to rely on in case an economic downturn comes around.

At the moment, Haselum favours buying Sonic Healthcare Limited (ASX: SHL).

“The healthcare provider has operations in Australasia, Europe and North America,” he said.

“The company offers a strong balance sheet and defensive core earnings. A strong balance sheet enables acquisition opportunities.”

The share price has fallen 7.7% since the end of May, opening up a chance to nab a bargain.

“We believe a buying opportunity exists, as the shares have fallen $37.12 on May 30 to trade at $34.35 on July 21.”

The Sonic Healthcare stock price closed Monday at $34.45.

The Motley Fool’s Tristan Harrison wrote last week that Sonic could be a beneficiary of the current resurgence of the pandemic.

“COVID-19 cases are now increasing, as are hospitalisations, as a third wave of Omicron sweeps across Australia,” he reported.

“The Sonic Healthcare share price is attractive because of the ongoing growth of its base business, the ageing demographic tailwinds, continuing COVID-19 testing, a growing dividend, and the ability for the business to keep putting excess cash to good use with acquisitions and share buybacks.”

The post 2 ‘good value’ ASX 200 shares offering what investors want right now: expert appeared first on The Motley Fool Australia.

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More reading

• From chasing criminals to ASX gems, why this ex-cop keeps buying in a bear market
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the AFIC share price outperforming on Monday?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There is no doubt 2022 has been distressing.

Innocent people are fighting a war in Ukraine, the most vulnerable folks in society are devastated from skyrocketing energy and food prices, and investment portfolios have plunged deep into the red.

As investors, it’s instinctive to get caught up in the negativity. We are all just humans, after all.

But for our ASX shares portfolio, it is prudent to remember that stocks have no memory and no awareness of world events.

They are simply pieces of ownership in a company.

So when there are rational reasons for a business to have a bright outlook for the 2023 financial year, perhaps it’s worth considering buying stocks in it.

With this philosophy in mind, here are two ASX shares that one expert reckons are ripe to buy now:

‘A strong market update’

Ord Minnett senior investment advisor Tony Paterno reckons National Storage REIT (ASX: NSR) is a buy at the moment.

“The big self-storage provider recently posted a strong market update for fiscal year 2022,” he told The Bull.

“Net tangible assets are expected to increase to $2.34 a share, a 13% increase on December 31, 2021.”

As a comparison, National Storage shares closed Monday at $2.38.

Paterno likes the outlook for the coming period.

“It upgraded underlying earnings guidance to a minimum of 10.5 cents a share,” he said.

“The update, on the back of a strong operating performance, positions it well for growth in the new financial year.”

National Storage is handing out a dividend yield of 4.2%, according to Google Finance.

Paterno’s peers aren’t quite as convinced yet about the storage provider. According to CMC Markets, only two out of 10 analysts are rating the stock as a buy.

‘Expect continuing growth’

Four-wheel drive accessories maker ARB Corporation Limited (ASX: ARB) is another that Paterno is urging his clients to buy.

The company’s share price has dropped almost 41% so far this year. However, it has gained in excess of 5.4% over the past month.

Paterno believes in the company’s long-term expansion.

“We expect continuing growth in 4-wheel drive markets in the medium term,” he said.

“We expect the ARB store network to grow in Australia. Company products should also expand in overseas markets.”

Other professionals are more in agreement with Paterno for this pick than National Storage.

Six out of nine analysts surveyed on CMC Markets currently rate ARB shares as a buy.

A Market Matters report last month identified the stock as one that’s probably passed its worst conditions.

“It’s starting to feel like things are as bad as they can get for ARB,” the report read.

“It’s now trading on 19.6x FY22 earnings compared to a 5-year average of 27.5x… This is one retailer we like into excessive weakness.”

The post 2 ASX shares ready for growth in FY2023: expert appeared first on The Motley Fool Australia.

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More reading

• Here are top 2 ASX dividend shares with great yields
• Here are the top 10 ASX shares today
• Why Ardent Leisure, Michael Hill, National Storage, and WiseTech shares are rising
• 4 ASX dividend shares to buy that aren’t banks or miners: expert
• This is the latest ASX 200 sector to be hit by downgrades

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Alto Capital investment advisor Tony Locantro reveals how he went from a police uniform to a suit and tie.

Investment style

The Motley Fool: How would you describe what you do to a potential client?

Tony Locantro: I’m Tony Locantro, I’ve been in the financial advice industry since 1998. I’m a former New South Wales police officer. I taught myself the stock market on night shift or on my time off. I’ve been advising clients on speculative stocks, micro caps, since 1998. 

I look after mainly mums and dads in building a portfolio of micro-cap stocks, and this involves portfolio selection, extensive research, going to conferences, webinars, and every other aspect of trying to find these stocks.

The other benefit I have for my clients is to hold their hands during extreme market volatility, help them take windfall profits, and just basically keep effective use of capital, to keep that capital moving, realising that all these small companies don’t necessarily turn into big ones. 

I’m also involved in the IPO [initial public offer] of small-cap mining and biotech shares. I do a lot of financial media, and I just keep heavily involved in the industry.

MF: As you say, your job does involve a bit of hand-holding of clients through volatile times. This year’s a perfect example of that, isn’t it?

TL: Oh God, yeah. Well, humans are wired to buy high and sell low. They are often influenced by news articles. A lot of clients have a certain threshold to the Dow Jones Industrial Average (DJX: .DJI). The Dow Jones, if it falls over a thousand, you’ll have a lot more people selling, than if it falls say 900. 

So they’re always prone to the indices, and during times of market volatility, a lot of existing shareholders do not feel like buying. They’ll back off. You have others panic sell and you get huge percentage declines. 

Interestingly, this tax loss selling [last month], in my 24 years, has been the worst I’ve ever seen.

MF: Indeed. June was pretty ugly for Australian stocks, wasn’t it?

TL: Yeah. I think you could almost cue the Benny Hill theme song to a lot of the selling. A lot of ruthless shareholders just exited and it was like lemmings off a cliff. So this had provided some of the best buying opportunities, because, as you know, every sign of market weakness with hindsight is an opportunity. Existing weakness, or future, is a threat.

MF: How do you see the state of play at the moment and where do you see the market going?

TL: I think we’re definitely in a bear market for the major indices. What normally happens is that during a bear market, the bear market rallies [and] bull traps are quite powerful. 

The Dow Jones did go below 30,000. It’s now around 32,000, but I think that with the inflationary and interest rate environment, that both the Australian market and US major indices, I think, are going lower, but it won’t be in a straight line. We will have some bad nights on both markets. I just can’t see any real impetus to drive valuations higher. 

I think there’s enormous economic headwinds in Australia. The RBA [previously] said it was plausible no rate rises before 2024 — that’s not happening. We’re seeing the fastest increase in interest rates. This will decimate the east coast property market. It will lead to a significant decline in consumer confidence. And there’s a decent chance we’ll go into a recession or a stagflationary environment where it’s an inflationary recession.

MF: Considering that outlook, even if there are bargains out there, are you advising clients to wait?

TL: No, I never wait. 

I accept the fact I’m going to get beaten up in some of these stocks, but you’ve got to know who your enemy is. 

So, there’s always going to be a list of winners at the end of the year. You might have the S&P/ASX 200 Index (ASX: XJO) down 10%, but there’s going to be stocks that go up 200%, 300%. 

The other interesting aspect is that these mineral explorers that are quality, exploration discovery always outperforms any market and a lot of these stocks actually overshoot to the upside.

And there’s pharmaceutical companies out there with billions of dollars that don’t care what markets are doing. All they care about is the science. So if biotech companies can get through their trials, there’s big pharmas there with big expenditure just to take them out. 

So my theory is life is too short [to wait], because markets can correct from oversold levels to hideously oversold, and they can correct from high levels. 

And at the moment the world’s awash with negativity. There is justification for that. But as a small-cap investor, you block out all the noise — you become laser focused on each individual company, and that’s where the real upside lies. And that’s a model I’ve developed over my 24 years.

The post From chasing criminals to ASX gems, why this ex-cop keeps buying in a bear market appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the AFIC share price outperforming on Monday?
• Experts predict 2 companies heading for the ASX 20 (and 2 that will get kicked out)

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a very small decline. The benchmark index fell 1.6 points to 6,789.9 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market is expected to open the day higher on Tuesday despite a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% higher. On Wall Street the Dow Jones rose 0.3%, the S&P 500 edged 0.1% higher, and the NASDAQ dropped 0.4%.

Flight Centre rated neutral

The Flight Centre Travel Group Ltd (ASX: FLT) share price continues to be rated as neutral by Goldman Sachs despite the travel agent’s guidance upgrade. This morning the broker reiterated its neutral rating with a $20.90 price target. Though, it is worth noting that Goldman’s price target still implies upside of almost 19% for investors.

Oil prices rise

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 2.1% to US$96.71 a barrel and the Brent crude oil price has risen 1.85% to US$105.10 a barrel. A softer US dollar and supply concerns boosted commodity prices.

South32 a strong buy

The South32 Ltd (ASX: S32) share price could be great value according to Goldman Sachs. This morning the broker responded to the miner’s quarterly update by reiterating its conviction buy rating with a $4.90 price target. Goldman notes that the mining giant’s “FCF [is] set to jump in FY23 despite higher costs.”

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.6% to US$1,716.8 an ounce. Traders were selling the precious metal ahead of the US Federal Reserve interest rate meeting this week.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why is the AFIC share price outperforming on Monday?
• Why Damstra, Flight Centre, IAG, and Pantoro shares are pushing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you interested in adding some ASX growth shares to your portfolio this week? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is a printed circuit board design software (PCB) provider.

PCBs are the boards you find in almost all electronic devices. And as they come in all shapes and sizes and with all kinds of different functions, the design of them is an extremely complex process and requires specialist software.

Through its Altium Designer and Altium 365 software, the company owns industry-leading software which is used by many of the biggest companies and organisations in the world such as NASA and Tesla.

Bell Potter is very positive on Altium and continues to forecast strong earnings growth over the coming years. It also sees upside for the Altium share price with its buy rating and $34.00 price target.

ResMed Inc. (ASX: RMD)

Another ASX growth share to look at is ResMed. It is a medical device company which has a focus on sleep treatment solutions.

Over the last decade, ResMed’s revenue and earnings have grown at a strong rate thanks to the quality of its products and its large and growing market opportunity.

In respect to the latter, management estimates that there are almost one billion people with sleep apnoea globally (with only ~20% diagnosed) and a little under half a billion people suffering from chronic obstructive pulmonary disease (COPD). This gives it a long runway for growth over the 2020s and beyond.

Morgans is a fan of ResMed and currently has an add rating and $37.95 price target on its shares.

The post 2 outstanding ASX growth shares brokers rate as buys appeared first on The Motley Fool Australia.

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More reading

• 3 fantastic ASX tech shares experts say are buys
• Own Altium shares? Here’s what to expect from its FY22 results
• Up 14% in a month, is the Resmed share price just getting started?
• 3 blue chip ASX 200 shares experts say are buys
• Broker names 2 ASX growth shares to buy now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has fallen in the year, but experts have tipped three shares that could rise in a high-interest rate environment.

The benchmark ASX 200 index has lost nearly 9% in the year to date and more than 8% over the past 12-months.

So let’s take a look at three ASX 200 shares the experts recommend right now.

What shares are worth investing in?

According to some analysts, shares in CSL Ltd (ASX: CSL), QBE Insurance Group Ltd (ASX: QBE) and Transurban Group (ASX: TCL) could be worth considering.

QBE shares leapt 1.14% on Monday, while Transurban shares were up 1.64% at the close and CSL shares fell 0.84%.

Analysts have named multiple shares that could climb despite higher interest rates, with Investors Mutual senior portfolio manager Hugh Giddy saying in a livewire interview that CSL “might do really well”.

Giddy said that CSL was “a very high margin business” with many research and development costs already “expensed”. He added:

Then they’ve got the plasma donation cost, but that actually could come down because we are heading into harder times.

Meanwhile, Atlas Funds Management chief investment officer Hugh Dive recommended QBE Insurance and Transurban. Commenting on QBE, he said:

I think the insurance companies will do well particularly, for example, QBE. It’s got a US$29 billion float, which has earned close to zero for the last 10 years.

Dive also earmarked Transurban, citing the fact that tolls went up when inflation jumped. Dive noted:

… every year with inflation, the tolls go up. For the next four years, Transurban has said that every 1% increase in inflation equals another US$50 million in profit. So there are companies that do quite well in this environment.

The post Expert prediction: 3 ASX 200 shares that can ‘do well’ in volatile times appeared first on The Motley Fool Australia.

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More reading

• Why these blue chip ASX 200 shares are rated as buys by experts
• Up 10% so far in July, is the CSL share price heading back above $300?
• 3 ASX shares for ‘predictability’ through tough times: expert
• 2 ASX shares in healthcare ripe to buy right now: experts
• 3 blue chip ASX 200 shares experts say are buys

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With so many blue chip ASX shares to choose from, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two top blue chip ASX shares that experts rate as buys right now. They are as follows:

CSL Limited (ASX: CSL)

The first blue chip ASX share to consider is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring business and the Seqirus business.

The CSL Behring business is the global leader in a plasma therapies industry worth a massive ~US$30 billion per year. Whereas Seqirus is the number two player in the ~US$6 billion global influenza vaccines industry.

While COVID-related plasma collection headwinds have been weighing on CSL’s performance, this headwind is now easing. In fact, industry data appears to show that collections are back to pre-COVID levels at long last. This should be supportive of its margins in the coming years, especially as the company rolls out its new collection technology which is expected to collect plasma more efficiently.

In light of this, investors may want to focus more on the long term, which remains very positive for CSL thanks to strong demand for its portfolio of life-saving therapies and vaccines, its lucrative research and development pipeline, and the impending acquisition of Vifor Pharma.

Citi is positive on CSL and currently has a buy rating and $330.00 price target on its shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Management has expertly developed its portfolio to give it exposure to key growth markets such as ecommerce and logistics. This has been a huge success and been a key driver of Goodman’s stellar growth in recent years and again in FY 2022.

For example, in FY 2022, strong demand has led to the company upgrading its earnings guidance numerous times. So much so, it now expects earnings per share growth of 20%+ this year.

The team at Citi is also positive on Goodman. Its analysts continue to believe that Goodman’s guidance is conservative and that the company will outperform it. The broker is also forecasting earnings per share growth of almost 20% in FY 2023.

In light of this, it will come as no surprise to learn that Citi has a buy rating and $22.00 price target on Goodman’s shares.

The post Why these blue chip ASX 200 shares are rated as buys by experts appeared first on The Motley Fool Australia.

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More reading

• Up 10% so far in July, is the CSL share price heading back above $300?
• Brickworks share price higher on record earnings, Goodman deal
• 2 excellent ASX 200 shares to buy right now according to experts
• 2 ASX shares in healthcare ripe to buy right now: experts
• Down 28% so far this year, could the Goodman share price be ready to take off?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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